Interim Budget for 2024-25 is presented by Hon’ble Finance Minister Smt. Nirmala Sitharaman today i.e. February 01, 2024 and highlighted that the Indian economy has witnessed profound positive transformation in the last ten years. The people of India are looking ahead to the future with hope and optimism.
The following amendments proposed in the Finance Bill 2024, will come into effect from the 1st day of April, 2024. The said proposed amendments under Income Tax Law vide the Finance Bill, 2024, has been shown below for your easy digest.
9 Key Highlights Of Budget 2024 on Income Tax laws:-
1. Over the last ten years, the direct tax collections have more than trebled and the return filers swelled to 2.4 times.
2. Faster refund : Reduction in average processing time of returns from 93 days (2013-14) to 10 days (2023-24)
3 . Under the new tax scheme, there is now no tax liability for taxpayers with income up to ₹7 lakh.
4. No change in Income Tax rates, Surcharge, threshold limits of Income Tax, Deduction/Exemptions prescribed under the old Income Tax Regime as well as the new Tax Regime;
5. No change in Corporate Tax Rates, Firms/ LLP Tax Rates or Cooperative society tax rates;
6. Extension of exemption to the wholly owned subsidiary of Abu Dhabi Investment Authority(ADIA) or Sovereign wealth fund or pension fund: Income by way of dividends, interest, or long-term capital gains of a wholly owned subsidiary of the ADIA, a sovereign wealth fund,or a pension fund was tax-exempt. However, the said exemption was only available if the investment was made between April 01, 2020 and March 31, 2024. The Finance Bill 2024 proposes to extend the deadline for investment till March 31, 2025.
7. Time limit for the incorporation of Faceless Scheme for Transfer Pricing Officer u/s 92CA & Faceless Scheme for Dispute Resolution Panel u/s 144C & Faceless Scheme for Income Tax Appellate Tribunal u/s 253 & Consequential Procedure of Appellate Tribunal u/s 255 is further extended from existing deadline of March 31, 2024 to March 31, 2025.
8. Amnesty for withdrawal of Outstanding Tax Demands:
a.Tax demands outstanding up to Rs. 25,000 pertaining to the period up to FY 2009-10; and
b.Tax demands outstanding up to Rs. 10,000 for FY 2010- 11 to 2014-15.
[Expected to benefit approx. 1 crore taxpayers]
9. Time limit is extended from March 31, 2024 to March 31, 2025 for:
a. Eligible startups for deduction u/s 80IAC;
b. Specified fund under u/s 10(4D); and
c. A Non-Resident having income as royalty or interest on account of leasing of an aircraft or a ship in a previous year to a unit of an International Financial Services Centre as referredu/s 80LA.
Click on link to download Budget key features 2024 https://www.indiabudget.gov.in/doc/bh1.pdf
Click on link to download Finance Bill 2024 https://www.indiabudget.gov.in/doc/Finance_Bill.pdf
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